Alterra Power Corp. announces that a group of Icelandic pension funds ("Jarðvarmi") that currently holds a 25% interest in HS Orka hf has delivered notice that it intends to increase its stake to 33.4% in accordance with the terms of the original purchase agreement entered into on June 1, 2011. Alterra Power's interest in HS Orka will be reduced from 75% to 66.6%.
To effect the change in ownership, Jarðvarmi will invest ISK 4.7B (USD 38.5 million) in HS Orka through the purchase of 878,205,943 treasury shares at a price of ISK 5.35 per share. This price represents a 15.6% increase over the original price paid by Jarðvarmi of ISK 4.63 per share for their initial 25% stake. These funds are expected to be used by HS Orka for the equity requirements for 80 MW of expansions which will increase the Reykjanes plant capacity from 100 MW to 180 MW. Closing is expected to occur before the end of February. Alterra Power was advised on the transaction by MP Bank.
